With autumn right around the corner most people throughout the country are probably looking forward to the weather cooling off. While that may not be the case in always sunny South Florida, there is one thing that seems to be cooling off in the local area: the residential real estate market.
Although for quite some time our readers saw almost nothing but good news for the quickly recovering South Florida real estate market, the last couple of months have seen a few reports that indicate that may be changing. One such report surfaced recently, detailing a slowdown in the rise of home prices in the local area.
According to the report, the second quarter rise in home prices stood at 7.6 percent, bringing the median price for a family home to $270,000. Many of the previous figures on this type of residential property were usually showing double-digit rises in the percentage.
But is this slowdown really a sign of doom and gloom heading for the South Florida real estate market? Probably not. The recovery of the real estate market in the local area was happening at such a fast pace that a slowdown was bound to start at some point. And, as the recent report pointed out, the fact there was a slowdown in the rise of home prices doesn’t mean that the recovery is screeching to a halt. The fact is that the rise in home prices in South Florida is still happening at a faster rate than most other places in the country. So, while this slowdown in rising prices may sound off alarm bells for some, the most likely scenario is that this is just one part of a real estate market that is beginning to level out, to a certain extent.
Source: Miami Herald, “South Florida home prices rising more slowly,” Martha Brannigan, Aug. 12, 2014
Source: Miami Herald, “South Florida home prices rising more slowly,” Martha Brannigan, Aug. 12, 2014
